December Filers

[Mariye & Ky 172]

Dear Dec 2010 K-1 Petitioners (Beneficiary -- give to your Sweetheart): Here's something for you to take note before our 2010 Taxes are due. :star:

The Most-Overlooked Tax Deductions

Kiplinger Staff

Friday, February 4, 2011

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Years ago, the fellow who was running the IRS at the time told Kiplinger's Personal Finance magazine that he figured millions of taxpayers overpaid their taxes every year by overlooking just one of the money-savers listed here.

Cut your tax bill to the bone by claiming all the breaks you deserve -- including some you may have forgotten or never even knew about.

More from Kiplinger.com

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State Sales Taxes

This write-off makes sense primarily for those who live in states that do not impose an income tax. You must choose between deducting state and local income taxes or state and local sales taxes. For most citizens of income-tax states, the income-tax deduction is a better deal.

If you purchased a vehicle, boat, airplane or even home-building materials, you get to add the state sales tax you paid to the amount shown in IRS tables for your state, to the extent the sales tax rate you paid doesn't exceed the state's general sales tax rate.

Reinvested Dividends

This is the break former IRS Commissioner Fred Goldberg told Kiplinger's that a lot of taxpayers miss.

If, like most investors, you have mutual-fund dividends automatically invested in extra shares, remember that each reinvestment increases your "tax basis" in the fund. That, in turn, reduces the taxable capital gain when you redeem shares.

Forgetting to include the reinvested dividends in your basis -- which you subtract from the sale proceeds to pinpoint your gain -- means overpaying your tax.

Out-of-Pocket Charitable Deductions

You can write off out-of-pocket costs incurred while doing good works.

The money you spend on ingredients for casseroles you prepared for a soup kitchen, for example, or on stamps you buy for your school's fund-raiser counts as a charitable contribution.

Also, if you drove your car for charity in 2010, remember to deduct 14 cents per mile.

Student-Loan Interest Paid By Mom and Dad

Generally, you can only deduct mortgage or student-loan interest if you are legally required to repay the debt. But if parents pay back a child's student loan, the IRS treats it as though the money was given to the child, who then paid the debt.

A child who's not claimed as a dependent can qualify to deduct up to $2,500 of student-loan interest paid by Mom and Dad. And he or she doesn't have to itemize to use this money-saver.

Job-Hunting Costs

If you're among the millions of unemployed Americans who were looking for a job in 2010, keep track of your job-search expenses. If you're looking for a position in the same line of work, you can deduct job-hunting costs as miscellaneous expenses if you itemize, but only to the extent that the total of your total miscellaneous itemized deductions exceed 2% of your adjusted gross income. Job-hunting expenses incurred while looking for your first job don't qualify.

Deductible job-search costs include, but aren't limited to:

• Food, lodging and transportation if your search takes you away from home overnight

• Cab fares

• Employment agency fees

• Costs of printing resumes, business cards, postage, and advertising

Moving Expenses to Take Your First Job

As we just mentioned, job-hunting expenses incurred while looking for your first job are not deductible. But, moving expenses to get to that position are. And you get this write-off even if you don't itemize.

To qualify for the deduction, your first job must be at least 50 miles away from your old home. If you qualify, you can deduct the cost of getting yourself and your household goods to the new area, including 16 1/2 cents per mile for driving your own vehicle for a 2010 move, plus parking fees and tolls.

Military Reservists' Travel Expenses

Members of the National Guard or military reserve may tap a deduction for travel expenses to drills or meetings. To qualify, you must travel more than 100 miles from home and be away from home overnight.

If you qualify, you can deduct the cost of lodging and half the cost of your meals, plus 55 cents per mile for driving your own car to get to and from 2010 drills. In any event, add parking fees or tolls. You get this deduction regardless of whether you itemize.

Health Insurance Deduction to Reduce Self-Employment Tax

Business owners have always been allowed to deduct health insurance premiums for themselves and their family in computing adjusted gross income on the front page of Form 1040. For 2010, they can also deduct the cost of those health insurance premiums in calculating self-employment tax on Schedule SE.

The IRS has hidden this write-off on line 3 of Schedule SE. On that line, you are told to add your self-employment income from lines 1 and 2, subtract the amount claimed on line 29 of Form 1040 (your health insurance premiums) and enter the net amount on line 3.

Child-Care Credit

It's easy to overlook the child-care credit if you pay your child-care bills through a reimbursement account at work. Although only $5,000 of such expenses can be paid through a tax-favored reimbursement account, up to $6,000 (for the care of two or more children) can qualify for the credit.

So, if you run the maximum allowed by your work plan, you can claim the credit on as much as $1,000 of additional expenses you pay for work-related child care. That would cut your tax bill by at least $200.

Estate Tax on Income in Respect of a Decedent

This sounds complicated, but it can save you a lot of money if you inherited an IRA from someone whose estate was big enough to be subject to the federal estate tax. Basically, you get an income-tax deduction for the amount of estate tax paid on the IRA assets you received. Let's say you inherited a $100,000 IRA, and the fact that the money was included in your benefactor's estate added $45,000 to the estate-tax bill.

You get to deduct that $45,000 on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one year, for example, you get to claim a $22,500 itemized deduction on Schedule A. That would save you $6,300 in the 28% bracket.

State Tax Paid Last Spring

Did you owe tax when you filed your 2009 state tax return in the spring of 2010? Then, for goodness sake, remember to include that amount with your state-tax deduction on your 2010 return, along with state income taxes withheld from your paychecks or paid via quarterly estimated payments.

Refinancing Points

When you buy a house, you get to deduct points paid to get your mortgage in one fell swoop. When you refinance a mortgage, though, you have to deduct the points over the life of the loan. That means you can deduct 1/30th of the points a year if it's a 30-year mortgage -- that's $33 a year for each $1,000 of points you paid. Not much, maybe, but don't throw it away.

Even more important, in the year you pay off the loan -- because you sell the house or refinance again -- you get to deduct all as-yet-undeducted points. There's one exception to this sweet rule: If you refinance a refinanced loan with the same lender, you add the points paid on the latest deal to the leftovers from the previous refinancing ... and deduct the amount gradually over the life of the new loan.

Jury Pay Paid to Employer

Many employers continue to pay employees' full salary while they serve on jury duty, and some require the employees to turn over their jury fees to the company coffers. The only problem is that the IRS demands that you report those fees as taxable income. To even things out, you get to deduct the amount paid to your employer.

But how do you do it? There's no line on Form 1040 labeled "jury fees." Instead the write-off goes on line 36, which purports to be for simply totaling up the deductions that get their own lines. Add your jury fees to the total of your other write-offs, and write "jury pay" on the dotted line.

American Opportunity Credit

This tax credit, which has been extended through 2012, is available for up to $2,500 of college tuition and related expenses paid during the year. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less ($160,000 or less for married couples filing a joint return). The credit is phased out for taxpayers with incomes above those levels. This credit is juicier than the old Hope credit -- it has higher income limits and bigger tax breaks, and it covers all four years of college. And if the credit exceeds your tax liability (regular and AMT), it is partially refundable.

Making Work Pay Credit

You've probably been enjoying the fruits of this credit via reduced payroll tax withholding throughout the year. But to lock in your savings -- by reducing your tax bill by $400 if you're single or $800 if you're married and file a joint return -- you'll need to actually claim the credit on your 2010 tax return -- and you'll use Schedule M to do so.

The credit is equal to 6.2% of your earned income, capped at $400 or $800. For single filers, it starts phasing out at $75,000 of adjusted gross income and dries up at $95,000. The phase-out zone for couples is $150,000 to $190,000.

Credit For Energy-Saving Home Improvements

You can claim a tax credit equal to 30% of the cost of energy-saving home improvements up to a maximum of $1,500. This cap applies to both 2009 and 2010 combined, so if you claimed the maximum $1,500 in 2009, you don't get another crack at it for 2010. The credit applies to biomass fuel stoves, qualifying skylights, windows and outside doors, and high-efficiency furnaces, water heaters and central air conditioners.

For 2011, this credit goes back to pre-2009 limits (for example, $500 maximum credit for all years with no more than $200 for windows).

There's also no dollar limit on the separate credit for homeowners who install qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. Your credit can be 30% of the total cost (including labor) of such systems installed through 2016.

Additional Bonus Depreciation

As part of the year-end law extending the Bush tax cuts, 50% first-year bonus depreciation was extended and expanded retroactively to let filers write off 100% of the cost of qualified assets placed in service between September 9, 2010 and December 31, 2011. In effect, filers get to claim unlimited expensing. This break applies only to new assets with recovery periods of 20 years or less, such as computers, machinery, equipment, land improvements and farm buildings. So don't miss out on this big tax benefit if you placed business assets in service late in 2010.

Break on the Sale of Demutualized Stock

We're talking about stock that a life-insurance policyholder receives when an insurer switches from being a mutual company owned by policyholders to a stock company owned by stockholders. The IRS's long-standing position is that such stock has no "tax basis" so that, when the shares are sold, the taxpayer owes tax on 100% of the proceeds of the sale. But after a long legal struggle, a federal court ruled that the IRS is wrong. The court didn't say what the basis of the stock is, but many experts think it's whatever the shares were worth when they were distributed to policyholders.

If you sold stock in 2010 that you received in a demutualization, be sure to claim a basis to hold down your tax bill.

Home-Buyer Credit

We put this last because it's hard to imagine any taxpayer missing this big a tax break. But some deadlines were extended and you don't want to miss out if you qualify for the credit. First-time home buyers and longtime homeowners qualify for this break in 2010 as long as they either closed a home sale by April 30, 2010 or entered into a binding contract to purchase a home by April 30th and closed on the deal no later than September 30th. The credit is $8,000 for first-time home buyers (someone who didn't own a home in the three years leading up to the purchase of a new home) and $6,500 for longtime homeowners (those who continuously owned a home for at least five of the eight years leading up to the purchase of a new home).

The credit gradually disappears and is phased out for taxpayers with adjusted gross incomes between $125,000 and $145,000 (for singles) and $225,000 and $245,000 (for married couples who file jointly).

Also, if you purchased a home in 2010 and want your credit quicker, you are allowed to claim it early by filing an amended 2009 tax return.

Edited February 6, 2011 by Mari & Kadir

[Mariye & Ky 172]

(F) Dec 2010 K-1 NESTING: Creating a beautiful and relaxing environment for our Husband/ Wife [to be]. Let there be PEACE in our homes WHILE THEY'RE ADJUSTING (F)

Dear Dec K-1 Filers: Let's Organize! We have 12-15 weeks to the 5 month NOA2 date!

We have been busy trying to keep up with work, school, kids, pets, hobbies, record keeping for our NOA2 (each step of the VJ, right?), and of course WEDDING PLANNING! Let's face it, we' have a ton to do and there is no time like the present to take stock of our personal inventory. What's that mean? It means, who is cleaning your home, decluttering and getting rid of the stuff you don't need any longer, and preparing or NESTING for our new husband or wife to live in a total relaxing and inviting atmosphere! If you're like me, you may have answered, "Me, I do it all."

So here is a way that will ease up and possibly free up your time so you can do other things without the STRESS of the lists and lists of "to do's".

I'm leaving you with these housekeeping links so you can spend more time having fun getting ready to begin a new life together with your Sweetheart!

1. Flylady.net: I love this one and have used this site off & on for years now. Spend 15 mins a day cleaning and creating a peaceful environment. The housekeeping control journal is very helpful as you tailor it for your needs! http://flylady.net/index.asp
2. DoThisNow: Oh how I think this is such a cute source! Check out my link ... I have a surprise for you Dec' K-1 Filers!!! You can make this list your own by hitting edit, making your list, and then save. Be sure to keep this one in your favourites! http://nowdothis.com/ <<<Go see what I left you!
3. Lighten your Suitcase: For those of us who are going to visit their Darling's! http://declutteryrlife.blogspot.com/2010/01/how-to-lighten-your-suitcase.html
4. Unclutterer: This site is a very good reference site with much valuable information. http://unclutterer.com/

Maybe the Bigger question is, when will you find time for relaxation, and that means full peace of mind sans daily stress?

• Some use exercise as a way to chill. Not only is this healthy but it's a great way to look great in that tux or wedding dress!!! WOW WEE!!
• Some take themeselves out for a movie, opera, or symphony (yes, I will go see a matinee` when I'm mentally exhausted). I am my own best date since he's not here yet.
• Some take their pets (referring to dogs) out to the park, beach or for long walks.
• Some spend time on HERE lol... chatting and meeting new friends.

I am sure you can think of several other things we might do to chillax, and I'd love it if you would share!

With love from my heart to yours my Dec 2010 K-1 Filers!

Mari

[W&M 12]

Very nice post, Thank you for the links. I hope all is well. Have a wonderful day!

[Tim/Mav 305]

OMG. I been Single 19 years and I have to go through my CLUTTER. I have AGAIN how much time to clean this up. LOL Thanks Mari

[Mariye & Ky 172]

OMG. I been Single 19 years and I have to go through my CLUTTER. I have AGAIN how much time to clean this up. LOL Thanks Mari

Timbo,

You have 12 - 15 weeks. C'mon man, it can't be that hard! How much can one man accumulate anyhow?

Shopping lists for you:

1. Grocery: of the foods SHE LOVES (You better find a good Asian Market I think)

2. New Bedding so it's not so "Manly" --- Please stay away from greys & blues and anything that feels like a guy's room.

3. She's a Flip / Pinay? Better get a shoe rack and leave it empty.

4. LOL LOL WARNING!!! If you sell some of your clutter and put that money aside, you can give it to her for her new wardrobe (for the wedding yanno?)

5. Get a very good pair of sinella's (house shoes) because you will not be wearing any other shoe in the house.

6. Exercise so you look like a stud in your wedding attire.

That's all for now Timbo! LOL

Mari

PS: This will give you something to do instead of worrying about your age differences, which I told you... "Age is not against the law!"

Edited February 6, 2011 by Mari & Kadir

[wendie and sam 4]

LOL Mari, I love that post!! I totally need to de-clutter!!!

On a side note, I just got back from the Asian market!! (more for my own fruit/veggie fetish than his!!)

But my fiance will be here in 2 weeks, I hope he'll adjust to our new home (he hasn't seen it since I bought it in October 2010!) and to my new diet of fruits, veggies & whole grains. He's a typical Arabic eater, loads of white rice! lol.

Thanks for those links, I'll have to check them out thoroughly later.

[Mariye & Ky 172]

LOL Mari, I love that post!! I totally need to de-clutter!!!

On a side note, I just got back from the Asian market!! (more for my own fruit/veggie fetish than his!!)

But my fiance will be here in 2 weeks, I hope he'll adjust to our new home (he hasn't seen it since I bought it in October 2010!) and to my new diet of fruits, veggies & whole grains. He's a typical Arabic eater, loads of white rice! lol.

Thanks for those links, I'll have to check them out thoroughly later.

Ouuuuuu Wendie! I wish you were here, we have a super good Middle Eastern market! It's always busy with foodstuff from all over that part of the world. I get a ton of Turkish ingredients there, but for the fresh fruits and vegs, I go to the Asian market. Same with my fish... I point to the one swimming around it's friends and say, "That one". I rarely go to a Safeway or Lucky's anymore (the bigger chain groceries). I get more for my money in the mom & pop shops these days.

Do you have all the spices you'll need for the Arabic foods he loves yet? http://www.al-bab.com/arab/food.htm ( dont' know how good that site is, I typically hang in the Turk/ Greek foods)

I wish I knew how to add a pic on these posts.

Love,

Mari

[Paul + Tonieta 4]

Thanks to Mari and DizzyLoX for all your work.

We mailed our I-129F on Dec 18. I-797C notice date is 12/29. No update available on USCIS site at all.

Thanks again, its great to have a place where everyone is at the same stage.

I sent a message to Dizzy with our info already

Aloha...........Paul

[Mariye & Ky 172]

Thanks to Mari and DizzyLoX for all your work.

We mailed our I-129F on Dec 18. I-797C notice date is 12/29. No update available on USCIS site at all.

Thanks again, its great to have a place where everyone is at the same stage.

I sent a message to Dizzy with our info already

Aloha...........Paul

Welcome Paul & Tonieta to the Thread!!!

Nice you could join us and hope to see you around the thread more often!

Mari

[phyxsius 1]

I've been reading up a little bit in this threat, but I couldn't find one thing that i am actually trying to get myself.

I have a vaccination record from my home country. But the problem that I have is that the medical papers that I do have are in Swedish.

My guess would be that I would have to get them translated and notarized. I guess I should just spare all that hassle and just take new vaccine shots in my current country.. *Ireland*

What do you guys think?

I have already requested my birth certificate and Police records from Sweden. So that is done ! Then the only thing I really need to sort out would be my medical.

I have also emailed the certified doctor that does the medical here in Dublin to see if he does shots as well. and if so, how much would it cost me. Since I know the medical is already 350 euros !

Any one else out there that's currently residing in another country other than your homeland that is doing twice the work?

[Bec_Dipu 103]

I've been reading up a little bit in this threat, but I couldn't find one thing that i am actually trying to get myself.

I have a vaccination record from my home country. But the problem that I have is that the medical papers that I do have are in Swedish.

My guess would be that I would have to get them translated and notarized. I guess I should just spare all that hassle and just take new vaccine shots in my current country.. *Ireland*

What do you guys think?

I have already requested my birth certificate and Police records from Sweden. So that is done ! Then the only thing I really need to sort out would be my medical.

I have also emailed the certified doctor that does the medical here in Dublin to see if he does shots as well. and if so, how much would it cost me. Since I know the medical is already 350 euros !

Any one else out there that's currently residing in another country other than your homeland that is doing twice the work?

Hi! I had my fiance's birth certificate translated by:

ACR Language Translation Services

ACR Systems Inc.

10888 Creekbridge Pl

San Diego, CA 92128

Telephone: 858-922-7724

Fax: 480-247-5474

Web Site: http://www.online-languagetranslators.com

If you decide to have your vaccination records translated, I had a great transaction with ACR. They responded very quickly, the prices were reasonable (I guess, having never done this before lol). I paid $85 for two copies that I received within one week.

If you decide to just have your vaccinations again, fair warning...they hurt much more as an adult and there is no lollipop at the end. My mom lost my records and I had to have them all again when I started college, ha ha ha.

Good luck on your journey!

[Bec_Dipu 103]

OMG. I been Single 19 years and I have to go through my CLUTTER. I have AGAIN how much time to clean this up. LOL Thanks Mari

I cracked up when I read this...the thing I've been most concerned about is how to make room in my closets. I don't think I can justify keeping 87 pairs of shoes and 38 purses and making my love live out of a suitcase until we buy a bigger house. Oh well, if I give them away to family and friends, I can always make them sign a contract promising to loan the article back to me if I ever have a fashion emergency!

[PreciousOne 4]

thanks mari!

I-129F sent - Dec. 11,2010

NOA 1 - Dec. 21,2010

Touched - Dec. 30,2010

Edited February 7, 2011 by corilene

[Mariye & Ky 172]

I cracked up when I read this...the thing I've been most concerned about is how to make room in my closets. I don't think I can justify keeping 87 pairs of shoes and 38 purses and making my love live out of a suitcase until we buy a bigger house. Oh well, if I give them away to family and friends, I can always make them sign a contract promising to loan the article back to me if I ever have a fashion emergency!

Yeah you and me both Bec! Today we are packing up house to move. I hate moving! By the Grace of God, I tell you since this was a temporary home (6 mos till so we can find home closer to my work), I never did unpack and declutter the move before!!!!! We are just carrying boxes of 'stuff' to the next place! I am sure if Kadir saw the mountains of boxes in the garage and living room right now.... OMG he will have a C-O-W!!!

LOL now who gets to practice what they preach??? huh?

I promise I am so committed to this project when I'm in the new house I cannot even begin to tell you all.

I have to go for a 20 min walk... I am stressing now.

Mari

[kiria&daniel 23]

can anyone answer my question????

So i may be a little slow buttt..... with this 5 months wait...Is it 5 months until we get our NOA 2 ? or is that final approval? how long is it approx until I will be allowed to see my fiance again???

Thanks for your help!!!

Kiria